Sahm Adrangi’s Kerrisdale Cash cow

Sahm Adrangi is the Chief Investment Officer and also the founder of the Kerrisdale Capital Management. He found the firm in 2009. During the launch of the firm, he began with only $1million in investment and currently, the company manages over $150. According to the Reuters, the company raised about $100 million from its investors and placed a bet on a single stock.

The inception and efficacy of the Hedge Fund

The Australian hedge fund Bronte Capital led by John Hempton made profits by uncovering corporate frauds that operated illegally on the stock market. Adrangi admired and borrowed John Hempton’s idea and formed hedge fund. He developed the interest in the Chinese firms that were un-vetted and were operating illegally in North America. He knew they were scams and he figured out that exposing them was the only way of making money out of those scams. He kept himself anonymous, and exposed how these Chinese firms were cooking their financial documents. He discovered that the firms had many discrepancies in their financial books and that was an indicator of their downfall. Kerrisdale made a kill out of this by putting 20% of its capital on a bet that the firms were collapsing.

Truly to their aspiration, the Chinese firms collapsed, and the Kerrisdale made huge profits out of that. Putting in mind the backlash he may receive after the expose, he exposed these frauds on an anonymous website. Adrangi dropped his anonymity and began publishing under the Kerrisdale Capital after other activist investors like Hempton and Carson Block disclosed the Chinese frauds publicly. The Chinese firms he exposed includes; China-Biotics, China Marine Foods, Education Alliance and China Education Corp.

The hedge fund by the Kerrisdale Company also focuses also on investigating the collapsing energy companies as well as mortgage-backed securities. Shane Wilson, an analyst at Kerrisdale together with Adrangi are working on a website, video and a report with a view of convincing others on their theory for the upcoming campaigns. They intended to unveil the company they are working on in mid-May. They have begun investing in the stock to increase the capital required to start up the company.

The Kerrisdale, a firm that is worth a proximately $500 million is known for betting against companies and publishing the matter. Its recent activity includes the Satellite Company Globalstar, and the drug makers sage Therapeutics and Zafgen.

Learn More : https://www.hvst.com/user/sahm-adrangi

Here is why George Soros is investing in the Biotech Industry

George Soros is regarded as the hedge fund management expert of all time and for good reason. George Soros is also the founder of his namesake hedge fund; Soros Fund Management. During his time as the Chief Executive Officer of Quantum Endowment Fund (the primary client of Soros Fund Management), he partnered with a host of other hedge funds to acquire IndyMac Bank at a total cost of $14 billion, gaining control of roughly $160 billion in bank’s investments, loans, and deposits. As a result, the hedge fund generated an excess of 30% annually, crushing the broader financial sectors in the process.

That explains why Soros Fund Management is still in control in the world of finance despite George Soros‘ retirement earlier last year. As such, investors have more than enough reasons to track its quarterly buys and sells.

According to recent 13F filings with the Security Exchange Commission, it was reported that Soros Fund Management had sold its entire shares to Gilead Sciences, iShares Nasdaq Biotechnology Fund, and Novavax in its second quarterly earnings of 2016. Although some of these biotech investments have underperformed due to political impediments related to drug tariffs, it is expected that scenario will change soon once President Hillary Clinton is elected as the U. S. President.

Read more:
Foreign Policy
Latino Fox News

George Soros firmly believes that even if Hillary Clinton wins and tries to fulfill his promise to set up new drug pricing regulations, the pharmaceutical sector’s ginormous petition machine will certainly block any major reforms. As such, the higher drug rates will be there to stay.

Additionally, while Gilead Sciences has fallen after selling its top hepatitis C medication that’s apparently hitting its peak, the biotechnology company still owns plenty of ammo to pursue a handful of smaller deals or a single acquisition to revive its top line and move forward. The company at http://www.cnbc.com/2016/08/30/heres-who-was-in-the-room-when-clinton-met-with-soros-at-state-dept.html is also trading at a ridiculously low price-earnings ratio right now, meaning that the market expects its new medication line to crush completely. However, this is unlikely to happen considering that its new Hepatitis C drug; Epclusa is already showing signs of promise which the biotechnology stock will be damn to ignore.

This is because the investment seems pretty much warranted especially for those patient enough to look for high-growth opportunities in the reinvigorating pharmaceutical industry. Additionally, considering that George Soros has a track record of generating successful investment ideas, it is wise for an investor to stick to a long-term and fundamental-oriented strategy postulated by Soros, rather than emulating the ideas of other unknown analysts.